Client opened a 529 education plan for his grandchild. deposited $80K to the account in Sep 2024.

then someone told him bcs it's more then $16K he needs to file 709 for for the next 5 years. So he went ahead and took out $64K out in Dec 2024. I am 100% sure the brokerage firm will report it to the IRS.

my question is, how to handle it when we file 2024 taxes.